Summary

In this module, we look at decision theory problems that involve many states of nature and alternatives. As an alternative to decision tables and decision trees, we demonstrate how to use the normal distribution to solve break-even problems and find the EMV and EVPI. We need to know the mean and standard deviation of the normal distribution and to be certain that it is the appropriate probability distribution to apply. Other continuous distributions can also be used, but they are beyond the level of this module.

..................Content has been hidden....................

You can't read the all page of ebook, please click here login for view all page.
Reset